Marathon Digital secures Bitcoin mining sites through a $179 million acquisition
Marathon Digital has secured a lucrative cash deal with Generate Capital and a subsidiary of PBC to acquire two operational Bitcoin mining farms. This move will significantly increase Marathon’s capacity to approximately 390 megawatts. The transaction signifies Marathon’s transition from being an asset-light organization to managing a diverse Bitcoin mining portfolio, as it acquires its first fully owned sites. Currently, Marathon holds 584 megawatts, with only 3% being owned and the remaining 97% being hosted by third parties. This acquisition will boost Marathon’s total capacity to around 910 megawatts.
Following the deal, 45% of the capacity will be located on Marathon-owned sites, expanding the company’s opportunities for future growth. This could potentially double the operational hash rate to about 50 exahashes within the next 18-24 months.
Under the terms of the agreement, Generate will transfer ownership of data centers in Granbury, Texas, and Kearney, Neb., which are currently operated by third parties, to Marathon. In exchange, Marathon will pay $178.6 million in cash from its balance sheet, amounting to approximately $458,000 per megawatt, subject to adjustments. The transaction is expected to be completed in the first quarter of 2024, pending customary closing conditions.
This announcement is a departure from a previous report, which outlined Marathon’s plans for international expansion before the Bitcoin halving. The company’s change in approach aims to establish itself as the most geographically diversified miner, with the potential for gradual reductions in production costs.
Marathon Digital’s recent success is evident in its mining of 1,187 BTC in November, despite the record network difficulty. This achievement has also contributed to an 11% jump in Marathon’s stock, as the company continues to expand globally.
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